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BANK/PERSONAL LOAN
Introduction:
The use of a personal loan, overdraft or credit
card to purchase the vehicle outright. Thus you
own the car from day one. The lender does not have
any title to your vehicle as the loan is unsecured.
How
it works:
The loan is used to pay the full balance to the
dealership on receipt of your vehicle.
Benefits:
· Outright ownership
· Little or no deposit required
· Spread monthly payments
Disadvantages:
· Uses up a vital line of credit for other
purposes
· No "Consumer Credit Act" cover
· Full risk of depreciation taken by owner
· Lender may require proof of earnings and
expenditure
· APR may increase from advertised or original
quote depending on applicants personal circumstances
and other factors
- Cleared funds are required before the vehicle
can be collected.
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